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Tampa Bankruptcy And Reorganization Blog

New bill provides tax relief for bankrupt farmers

Running a farm in the twenty-first century is no easy task. The financial burden is frequently too heavy for many farmers, sometimes even leading to bankruptcy. Fortunately, a newly enacted bipartisan law has recently been signed into law to provide tax relief to bankrupt family farms.

The bill was introduced by Senators Charles Grassley (R-Iowa) and Al Franken (D-Minn.) in October and cleared the Senate easily before being signed into law by President Trump. The new law is a step in the right direction for financially troubled farmers. 

Navigating bankruptcy as a Florida farmer

It's becoming increasingly common for farmers to face financial hardships within their current revenue stream. Credit is becoming more difficult to find and animal produce is harder now than ever to gain profitable returns from. Therefore, many farmers in Florida and across the country are looking into ways that they can diversify their product offering and looking into ways that they can get a fresh start from the debts that they have incurred.

Why Chapter 12 is made for farmers

Halting debt collection harassment through bankruptcy

One of the most stressful aspects of financial hardships is the reality of having to deal with constant harassment with debt collection agencies.

Although it is an illegal practice, and there are many protections in place for victims of debt collection harassment, it is still a reality for many that are struggling with missed payments.

Business bankruptcy: considering Chapter 11

If a business is going through hard financial times, the most important thing is to find a way to get the debts repaid, while at the same time maintaining and growing the current business streams. This can be a hard act to juggle, and there are many possible strategies that can aid you in going about doing this. One of these options can be filing for Chapter 11 bankruptcy for businesses.

When a business files for Chapter 11 bankruptcy, they are offered the means to reorganize their business so that potential profits are not lost and so that the business can be run more efficiently. Bankruptcies such as these are processed through a particular legal system that can aid the business. This legal system is called bankruptcy court.

Solving economic hardships on American farms

In the years since 2013, farmers across America have endured hardships due to the decreasing real value of agricultural produce such as livestock and crops. Shockingly, between the years of 2013 and 2016, there was a reported 45 percent decrease in the net income of farms across America, on average. This is the biggest drop over three years that have been recorded in recent history.

Why are farms struggling?

Are you eligible for Chapter 11 bankruptcy?

Chapter 11 bankruptcy is a way for an individual person or a business to be able to make the necessary changes in reorganizing their payments, debts and income streams.

It also is very helpful for those struggling with trying to get on top of their payments while they are being pressured by debt collectors, since filing for Chapter 11 automatically invokes a halt on all debt collection activities for a certain amount of time.

Avoiding bad credit in bankruptcy

Filing for bankruptcy is often seen as a last resort, mainly because of the consequences many see it as having. Many people believe that going through a bankruptcy will result in you losing your home, car, other important possessions and being left with a terrible credit report. However, this is not true. The key lies in choosing the type of bankruptcy that is right for your particular situation.

If you want to avoid foreclosure (losing your home) and a bad credit report, then it is likely that filing for Chapter 13 bankruptcy is the right choice for you. If you are late on your mortgage repayments, filing with Chapter 13 can actually halt foreclosure proceedings for a period of time and can help you to get back on track with your mortgage repayments.

Chapter 11 bankruptcy can be a good thing for business

When thinking about your business, you know that failure is not an option. Unfortunately, 80 percent of new businesses fail within the first 18 months, according to Forbes. What options do owners have when a business is in the doldrums? Legal options are available to help businesses bounce back from even the worst financial circumstances, and a high-profile example is taking place right now.

Chapter 11 bankruptcy can be a signal of future profitability

Although many businesses fail within their first 18 months, others can sustain decades of success before a changing economy phones a wake-up call. The 70-year old retailer Toys "R" Us recently filed for Chapter 11 bankruptcy after struggling to pay back a $3 billion loan. 

Asset liquidation and Chapter 12 bankruptcy

When you are going through Chapter 12 bankruptcy, especially if you are in the farming business, it is likely that you will be wanting to avoid the liquidation of large assets. Chapter 12 allows for the possibility to do this because it means that you are able to restructure your business so that it is more economically efficient.

However, before going through Chapter 12 bankruptcy you may want to consider the possibilities you have to liquidate assets that are not needed or not essential to your business. This liquidation can help prepare your farm for the processes of Chapter 12 bankruptcy.

Individual bankruptcy: Filing Chapter 11

Chapter 11 bankruptcy concerns itself with helping people reorganize their debts, their income and their methods of repayment. It is a great solution for a business, because it offers a way to enable businesses to change the means of their revenue stream. However, it's also a great option for individuals who have a high disposable income and do not qualify for Chapter 7 or Chapter 13.

This blog will provide a brief overview into Chapter 11 for individuals, and how it is possible for individuals to be able to free themselves of their debts and the accompanying stress by filing bankruptcy under Chapter 11.

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